Figure 5-14

The automated batch system presented in Figure 5-14 has many manual procedures similar to those presented in Figure
5-12. The principal difference is that accounting (bookkeeping) tasks are now automated.
a) The system in Figure 5-14 employs manual procedures as a control over the ordering process. A computer
program identifies inventory requirements and prepares traditional purchase requisitions, but the purchasing agent
reviews the requisitions before placing the order. Some firms do this to reduce the risk of placing unnecessary
orders with vendors because of a computer error. Such manual intervention, however, does create a bottleneck and
delays the ordering process. If sufficient computer controls are in place to prevent or detect purchasing errors, then
more efficient ordering procedures can be implemented.
b) This system automatically prepares the PO documents and sends them to the purchasing department for review and
signing.
c) Upon receipt of the purchase requisition, the purchasing department prepares a multipart PO. Copies are sent to the
vendor, AP, receiving, data processing, and the purchasing department’s file. The purchasing agent then mails the
approved POs to the vendors and distributes copies to other internal users
d) Data Processing Department: As explained in Figure 5-14, a copy of the PO is sent to data processing and used
to create a record in the open PO file. The associated requisitions are then transferred from the open purchase
requisition file to the closed purchase requisition file.
e) Receiving Department: When the goods arrive from vendors, the receiving clerk prepares a receiving report and
sends copies to the stores (with the goods), purchasing, AP, and data processing.
f) Data Processing Department: The data processing department creates the receiving report file from data provided
by the receiving report documents.
g) Then a batch program updates the inventory subsidiary file from the receiving report file. The program removes the
‘‘On Order’’ flag from the updated inventory records and calculates batch totals of inventory receipts, which will
later be used in the general ledger update procedure.
h) Finally, the associated records in the open PO file are transferred to the closed PO file.
i) Accounts Payable: When the AP clerk receives the supplier’s invoice, he or she reconciles it with the supporting
documents that were previously placed in the AP pending file.
j) The clerk then prepares a voucher, files it in the open voucher file, and sends a copy of the voucher to data
processing.
k) Data Processing Department: The voucher file is created from the voucher documents. A batch program validates
the voucher records against the valid vendor file and adds them to the voucher register (open AP subsidiary file).
l) Finally, batch totals are prepared for subsequent posting to the AP control account in the general ledger.
Figure 5-14 continue
a) Data Processing Department: Each day, the system scans the DUE DATE field of the voucher register for items
due. Checks are printed for these items, and each check is recorded in the check register (cash disbursements
journal). The check number is recorded in the voucher register to close the voucher and transfer the items to the
closed AP file.
b) The checks, along with a transaction listing, are sent to the cash disbursements department.
c) The cash disbursements clerk reconciles the checks with the transaction listing and submits the negotiable portion
of the checks to management for signing. The checks are then mailed to the suppliers.
d) One copy of each check is sent to AP, and the other copy is filed in cash disbursements, along with the transaction
listing.
e) Reconcile the open voucher file and close it.
f) Finally, batch totals of closed AP and cash disbursements are prepared for the general ledger update procedure.
g) At the end of the day, batch totals of open (unpaid) and closed (paid) AP, inventory increases, and cash
disbursements are posted to the AP control, inventory control, and cash accounts in the general ledger. The totals
of closed AP and cash disbursements should balance.
Figure 5-17
a) Kaw na bahala explain sina shet.
b) When the goods arrive, the receiving clerk accesses the open PO file in real time by entering the PO number taken from
the packing slip. The receiving screen then prompts the clerk to enter the quantities received for each item on the PO.
c) Quantities of items received are matched against the open PO record, and a record is added to the receiving report file
d) The inventory subsidiary records are updated to reflect the receipt of the inventory items and the general ledger inventory
control account is updated.
e) The record is removed from the open PO file and added to the open AP file, and a due date for payment is established.
f) Each day, the DUE DATE fields of the AP records are scanned for items due to be paid. Checks are automatically printed,
signed, and distributed to the mail room for mailing to vendors.
g) The payments are recorded in the check register file. Items paid are transferred from the open AP file to the closed AP
file. The general ledger AP and cash accounts are updated.
h) Reports detailing these transactions are transmitted via terminal to the AP and cash disbursements departments for
management review and filing